For 17 years, our Refund Management® service has been trusted by colleges and universities around the nation to disburse billions of dollars in federal aid to students. We have decades of combined experience in managing the unique intersection of Department of Education Cash Management guidelines and federal banking regulations. BankMobile Disbursements (part of Customers Bank), provides a compliant, full-service solution for institutions and students. We have a vigilant Government, Regulatory and Compliance team in place to ensure we meet or exceed regulations in this dynamic environment.
New Department of Education regulations governing Title IV disbursements on your campus went into effect on July 1, 2016. As the industry leader, we helped to shape these new policies which were developed over the course of several years.
Future provisions we are prepared for include:
BankMobile Disbursements will implement and manage all of the above requirements on behalf of your institution. Our internal and external Government Relations teams regularly track all movements in regulations and legislation and we have proven we are able to navigate changing environments. We believe a relationship with BankMobile Disbursements is advantageous to you and your students in the future, as it has been for many institutions, as is evidenced by our current offering which affords all the protections brought by the new Department of Education’s rules.
BankMobile Disbursement’s Refund Management service:
Every student will experience:
BankMobile Vibe, a digital-only, FDIC insured non-interest bearing checking account designed specifically for students. Vibe has no monthly fee for students, no overdraft or NSF fees, no PIN fees, no teller withdrawal fee and no minimum balance requirements.
Even the most streamlined in-house electronic refund programs still require check distribution, the costs of which add up quickly. College business officers and CFOs that we serve have shared that the cost of paper checks continue to rise, including printing and mailing, but also return check fees, canceled check fees and exception handling. By leveraging our full-service solution and leaving the student service to us, your institution can drive significant savings that can be reinvested in higher impact initiatives on campus.
If you are new to BankMobile Disbursements, we would be pleased to discuss your compliance concerns or questions.
Andrew Rakaczki VP of Government Relations
(203) 776 7776 x 4128
While it is true that the act of initiating ACH transactions is inexpensive, there is much more to consider when running a refund program, including non-ACH refunds and student communications and service. By building your own program, your institution may take on the considerable security risk of housing banking information and PII (Personally Identifiable Information) on internal servers. You may want to consult your IT department about the cost and risk to your institution of protecting this data so you can factor this into the evaluation. Also consider that it would be very difficult for an institution to achieve 100% ACH participation. That is, some students may not or cannot deposit their refund electronically and will require a paper check. In many cases, the in-house processes of printing checks, reporting, and student service along with exception handling (like managing returned mail) can be very costly and add up to much more than the full cost of our solution. Our Refund Management® Service was built to provide:
If a third-party servicer offers a financial account as part of its disbursement service, a Tier 1 arrangement exists. Our disbursement service is a Tier 1 service. If a financial institution offers branded access device (such as a card), offers a joint ID and bank card, or the institution markets a financial account directly to its student one of these conditions must exist), AND at least one Title I credit balance ends up in that account, a Tier 2 arrangement exists. This chart from NACUBO can provide a more detailed view.
We believe the main advantages of Tier 1 relationships include:
We are pleased to say that our entire Relationship Management, Admin Support and Call Center teams will continue to serve you and your needs after the acquisition, with a goal of minimal disruption to day-to-day operations.
No, specifically there will be no change to:
Likely the biggest change you’ll see in the short term is the requirement to make available our contracts as well as account fee information specific to your institution on your website by a 9/1/16 deadline date. We are making that easy by providing you with a link you can simply post. We will take care of ensuring that all of the necessary documentation and disclosures are posted and updated. Please look for the link to be available shortly on bankmobileadminsupport.com. This requirement applies to all Tier 1 and Tier 2 relationships. If your institution has a Tier 2 relationship and/or both a Tier 1 and Tier 2 relationship, all agreements and subsequent fee information for all relationships must be posted on your website.
The majority of changes that are taking place are great for students, starting with the new online refund selection process, which will be simpler, quicker and easier to navigate. Working with a Tier 1 provider means that the financial account offered abides by strong regulations put in place by the Department of Education. Some of these regulations that are meant to protect students do not apply to accounts provided by Tier 2 providers or accounts provided in the open marketplace, including the prohibition of a point-of-sale or PIN fee, fees for in-network balance inquiries, and the offering of credit cards and debt products to students. Our disbursement service guarantees that an FDIC-insured checking account with all the consumer protections afforded by a Tier 1 arrangement is available as a choice for your students – regardless of their credit history. In addition, you can rely upon us as a chartered bank to be a single partner that provides both the disbursement service and the financial account for your students. We look forward to discussing our account offering in more detail on the webinars scheduled for early April.
The new account offering is one of the most student-friendly accounts on the market. The new account will have no monthly fee for students, no inactivity fee, no overdraft fees, no point-of-sale/PIN fees, no teller withdrawal fees, no check ordering fees, and no fee to talk to a customer service agent. In fact the account will only carry three fees for students:
We are pleased to be able to expand access for accountholders to a nationwide network of 43,000 Allpoint® (55,000 ATMs internationally). Accountholders will have fee-free access to cash in this network. With this move to offer anywhere access, we will no longer be maintaining a specialized fleet of college campus ATMs. However, there may be opportunity for some campuses to manage their own ATMs on campus outside of this program. Your Relationship Manager can provide you with contact information and details.
The OneAccount will continue to be serviced by BankMobile Disbursements at this time.
We have already begun communicating these exciting changes to our accountholders and will regularly communicate changes and enhancements going forward. Scheduled communications to accountholders will include advance email notification discussing when Allpoint ATMs will be available for use and when multiple fees will be dropped from the account. We will work closely with you as well, to provide all the education necessary for your student population by way of campus posters, signage and online materials. New material is already available today on our Storefront. Just customize and download based on your campus needs.
Yes. Customers Bank has worked very closely with Higher One for more than two years as a bank partner, and is highly knowledgeable about our current business processes and campus needs. This move can ensure our leadership and team will continue to contribute their expertise and deliver a full-service product and personal service to you and your students under a new name. Customers Bank shares Higher One’s passion to serve college students and the millennial generation through technology. Higher One first leveraged technology to change antiquated processes to meet the needs of campus communities nationwide. Customers Bank’s BankMobile division has a vision for the future of banking that includes making banking more accessible and affordable to all. We believe combining visions, expertise and financial strength can help deliver next-generation services to you and your students today and tomorrow.